Toyota expecting new Camry sales slide

Toyota Australia has already confessed its newly revealed imported Camry will sell in fewer numbers than the outgoing locally built car, nine months before it lands in dealerships Down Under.

Despite touting the eighth-generation Camry as revolutionary for design and dynamics and bolstering it with a V6 for the first time in a decade, a loss of government contracts and reduced need for aggressive pricing have been cited as reasons for the forecast sales drop.

"We were getting some special treatment from various government authorities and some larger Australian companies would give us preferential treatment as a local manufacturer," admitted Toyota Australia sales and marketing executive director Tony Cramb.

"We'll certainly continue to sell Camrys to the fleet and government market [but] obviously buying policies will change after we are no longer are a local manufacturer.

2018 Toyota Camry. Photo: Supplied

"I think sales will come off where they are at the moment [but] that's [also] a reasonable assumption given that we are meeting a sales plan which is a commitment to our supplier base and also to our employees to ensure a smooth run-out and transition."

Cramb said Toyota Australia was working with suppliers on a closure date for its local factory at Altona, Victoria, and he confirmed the exact date within the fourth quarter of 2017 would be announced before the end of March.

He also disclosed that Toyota Australia was currently using aggressive pricing tactics to ensure that each Camry built finds buyers even beyond the factory closure – given the new model will be imported from Japan weeks after the closure – without factory downtime.

"I think it's fair to say we're selling more now that would ordinarily be sold in Australia, we're merchandising aggressively at the moment in order to meet that commitment to manufacturing," Cramb added.

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The Camry was the best-selling vehicle in the country in December 2016 with 4850 units shifted, while it finished the year with 26,485 sales and in sixth place overall on the charts.

Meanwhile the Aurion contributed 641 and 3833 sales over each period respectively, leading the Toyota Australia sales and marketing executive director to conclude that there was no longer a requirement for a separate nameplate first introduced in 2006 to tackle the Ford Falcon and Holden Commodore in the large car segment.

"I think with the emergence of a Camry V6 [in addition to the existing four-cylinder and hybrid versions] that market is probably at the point now where you couldn't manage to have more than one nameplate," Cramb explained.

"The [large car] market itself is shrinking and so for us that kind of entrant as a Camry into a segment which is big enough for one Toyota is a great entry into that market."

When the Camry-based Aurion debuted in 2006, the large car segment totalled 130,160 units; last year it managed just 35,398 sales.

"We've sold over 100,000 Aurions during its life and it has done an amazing job, but it was probably launched at a different time in the Australian automotive industry and it had a particular job and did a really good job of that," Cramb continued.

"I think the market is changing and we're changing with it."

However, despite the medium segment also being in decline (exclude the 26,485 Camrys sold last year and the remaining 15 segment entries total just 24,478 sales), Cramb said he believed the strengths of the new Camry would be welcome in the segment.

"What happens in terms of market segments happens over time, so time will tell," he said.

"[But] I think it's just a gorgeous car, it's a great representation of what can be done with the new TNGA [Toyota New Global Architecture] platform, with the vibrant styling that Toyota is moving towards and I think it's a wonderful package for the Australian consumer.

"It will be really well received."

Toyota Australia initiated focus groups singularly concerned with the sharpened styling of the new Camry, and Cramb said the vehicle "has been incredibly well received." And despite the move from Australian built to Japanese manufactured, he further stated that "I don't think that is going have a dramatic impact on pricing".

The current Camry starts from $26,490 plus on-road costs and tops out at $40,440 (plus orc). The new Camry V6 uses an updated version of the Aurion's 3.5-litre V6 engine, now with direct injection, teamed with an additional two gears to create an eight-speed automatic.

"The sports version of the V6 is the one that excites us the most," Cramb suggested.

"It's a terrific offering, and particularly the V6 and the hybrid, once you drive those vehicles you will be astounded about what a Camry is capable of.

"I think at that point you will start to realise why we're so excited about this car."

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Drive Comments

| 2017-01-11 04:27:49

The new 2018 Camry will easily outsell the new 2018 Commodore. Just like it has done in 2016. The only advantage the Commodore will have over the Camry is that it will be a 5 door hatch. I wonder if the new KIA will out sell them all?

Mr Majestyk | 2017-01-11 05:17:42

Big deal, the Camry outsells every other car that is infinitely better too. Quantity over quality which Australia loves.

MrB95 | 2017-01-11 10:15:31

Given the pricing of the Optima Gt and its specs, i don't think the Stinger is going to be fairly priced car either, so i doubt it'll outsell the market leaders, or even make it into the Top 10 for any given month :)
In any accord, this Camry is the best yet with features to rival and succeed other major brands (again), and as usual it will be built with great quality, so I'm sure it will sell really well.

Mr Majestyk | 2017-01-11 05:17:41

Big deal, the Camry outsells every other car that is infinitely better too. Quantity over quality which Australia loves.

MrB95 | 2017-01-11 10:24:00

To Drive, why are there photos of a Nissan concept in the opening of the article? Is it temporary advertisement? Because i can't see any connection between it and the 2018 Camry

Tex | 2017-01-12 00:32:12

@MrB95 - no kidding Toyota's a built with great quality. If you can perfect the same drivetrains etc in over 20 years then your doing something wrong

DJM61 | 2017-01-12 04:57:26

I can't see why it would sell in reduced numbers. The combination of low cost, high quality and excellent reliability will win fleet sales even without Australian manufacturer status. The new Camry V6 will sell to Police and emergency services and a younger demographic. The whale baleen grille on the left silver car is regrettable.

Lindsay | 2017-01-12 09:20:13

White goods on wheels... Doesn't matter where it is built. Like Volvo's, I try to avoid them when I ride my bike.

Grumbles | 2017-01-12 23:11:20

Very reliable and all that but still a boring car for conservative, middle age types. As Lindsay says white goods on wheels.

countach | 2017-01-12 23:50:46

With no Falcon and Commodore to compete with, who knows what will happen.